TD Bank Establishes $100 Million Racial Equity Fund

TD Bank has announced the launch of a $100 million equity fund to support minority-owned small businesses.

The fund will enable specialized small business investment companies (SSBICs) and community development financial institutions (CDFIs) to provide small business loans and technical assistance that give businesses the capacity to scale and adapt long-term. The commitment includes $75 million of capital through an SSBIC initiative to be launched later this year and $25 million specifically earmarked for Black- and Latinx-owned small businesses, funded through CDFIs.

"The pandemic has highlighted the depth of disparities that exist in communities of color, especially as it relates to small businesses, which serve as the backbone of our economy," said TD Bank president and CEO Greg Braca. "The equity fund will ultimately infuse capital and help stabilize these small businesses. But it's also about contributing to job creation, stimulating economic development, revitalizing these vibrant communities, and, just as important, breaking the cycle of disinvestment [that] systemically prevents communities of color from thriving. Small businesses are the heart of our communities — especially communities of color — and it's up to us to help them succeed."